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MFA Publishes Primer on Alternative Asset Managers’ Role in the Treasury Markets

WASHINGTON, D.C. — Today, Managed Funds Association (MFA) published a primer on alternative asset managers’ important role in the Treasury markets. The document details the benefits of alternative asset managers’ activity in the Treasury markets, highlights enhancements that can be made to the markets, and warns about the harms of radically changing the market structure without understanding the unintended consequences.

“Alternative asset managers play an important role in the Treasury markets. Their participation in the markets increases liquidity, dampens volatility, and lowers the cost of government borrowing,” said Bryan Corbett, MFA President and CEO. “The Treasury markets are not perfect. Sensible enhancement should be made to improve market function. However, policymakers should refrain from making ill-considered changes that decrease the number of market participants at a time when foreign central banks, the Fed, and banks are all reducing their exposure to Treasuries. The outcome could harm the health of the markets and increase the cost of borrowing for consumers, corporations, and the U.S. government.”

Read the primer here.

 

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About the Global Alternative Asset Management Industry

The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $4 trillion (Q4 2022). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.

About Managed Funds Association

Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 170 member firms, including traditional hedge funds, credit funds, and crossover funds, that collectively manage nearly $3 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.

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